An imminent discussion of digital currencies native to central banks of diverse countries has been sparked, and Facebook‘s Libra is at the heart and center of it.More than RippleRipple‘s flagship products leading cross-border payments might have been touted in the past as the leading catalyst for sparking conversations and implementation of digital currencies pegged to official national currencies. However, Facebook Libra has now officially taken center stage, eliciting more questions and urgency that are becoming even more expedient in 2020.The acceleration of an ‘independent ‘ Facebook digital currency has once again brought up questions of the dollar as the world’s reserve currency as fears continue to rise to the potential influence that Facebook Libra might have across the world.This,
Topics:
Adedamola Bada considers the following as important: Blockchain News, calibra, CBDC, Cryptocurrency News, david marcus, Facebook, gita gopinath, international monetary fund, Libra, News, paulo guedes, wef 2020, world economic forum
This could be interesting, too:
Bilal Hassan writes Morocco to Become First Developing Country with Clear Crypto Regulations
Bilal Hassan writes Cryptopia Liquidators Distribute 0 Million to Victims of 2019 Hack
Bilal Hassan writes Mo Shaikh Steps Down as CEO of Aptos Labs to Start New Chapter
Bilal Hassan writes FTX Announces January 2025 as Effective Date for Reorganization Plan
An imminent discussion of digital currencies native to central banks of diverse countries has been sparked, and Facebook‘s Libra is at the heart and center of it.
More than Ripple
Ripple‘s flagship products leading cross-border payments might have been touted in the past as the leading catalyst for sparking conversations and implementation of digital currencies pegged to official national currencies. However, Facebook Libra has now officially taken center stage, eliciting more questions and urgency that are becoming even more expedient in 2020.
The acceleration of an ‘independent ‘ Facebook digital currency has once again brought up questions of the dollar as the world’s reserve currency as fears continue to rise to the potential influence that Facebook Libra might have across the world.
This, even as of these days, has forced many nations to interrogate the prospect of creating their own CBDCs (Central Bank Digital Currency), including Japan, who is increasingly at alert following news of a planned Chinese Digital Yuan.
Challenging the Dominance of the U.S. dollar
The US Dollar dubbed often as the world’s reserve currency due to its influence over the years has been thrown under the spotlight of discussion involving the creation of CBDCs. While a significant number of countries are understood to be weaning themselves off the dollar and becoming less dependent, financial experts on a panel at the annual World Economic Forum (WEF) in Davos, seem to think otherwise.
In point of fact, major global economists are now crediting Facebook’s proposed Libra coin to be spearheading crucial discussions pushing the U.S. dollar as an anchor currency for other countries. The panel which featured and spanned experts across the world such as Brazil’s Economy Minister Paulo Guedes and Gita Gopinath, chief economist at the International Monetary Fund (IMF) bordered on the dominance of the USD and the challenges and questions it is currently raising.
According to Gopinath, the USD has maintained its position for years because of its stability and dependability.
“Why is it that the dollar has such dominance?” Gopinath explained. “It does because it is the currency that provides the best stability and safety. It makes complete sense to hold your value in dollars because if things go bad, it gains value.”
While Calibra’s David Marcus, probably the biggest proponent of Facebook’s Libra, agrees, he believes many current systems would soon be outdated.
Just as internet call apps have replaced traditional international calls, the same way currencies like Facebook Libra would go on to thrive without dependence on the U.S. dollar.
Damola is a crypto enthusiast, marketer, and writer who is seeking to achieve career excellence through positive contribution to the organization that aspires for excellence.